American Notes Health Care

The idea was to protect the elderly poor from the cost of health insurance by having the government pay the $29.90 monthly Medicare premium for people over 65 whose annual income is less than $6,620. But, according to the 1990 agreement between Congress and the Social Security Administration, in order to obtain the benefit, people had to apply for it. Families USA, an advocacy group for senior citizens, charges that 2.2 million people eligible for the program never made applications because the government didn't tell them about it. The monthly premiums continued to be deducted from their Social Security checks, saving the government $800 million so far this year.

Dr. Gail Wilensky, the Federal Health Care Financing Administrator, claims the agency did not know how to reach eligible seniors. "Saying poor, elderly people are out of luck if they don't know the program exists -- because the government isn't going to tell them -- is disgraceful," says Representative Henry Waxman of California, principal author of the 1990 provisions. Family USA hopes that seniors will soon get their benefits. If they don't, it will sue the government.